In a remarkable milestone for the Terra Classic community, Binance, the world’s largest cryptocurrency exchange, has successfully burned 760 million LUNC tokens in the 15th batch of the LUNC burn campaign.
This latest burn pushes the total number of LUNC tokens burned by Binance to approximately 40 billion tokens, contributing to the overall community burn of over 76 billion tokens.
LUNC Burn Mechanism Aims to Boost Token Value
The LUNC burn mechanism, driven by the community, aims to decrease the circulating supply of LUNC tokens and ultimately enhance their value. The latest burn, covering the period from September 30 to October 30, 2023, has been met with positive feedback from the Terra Luna Classic community.
Numerous members have expressed their gratitude towards Binance and its CEO Changpeng Zhao (CZ) for their unwavering support.
Concerns Regarding Declining Burn Rate and Possible Solution
Despite the overall appreciation, some community members have raised concerns about the declining burn rate, which has experienced a significant drop in recent months. Factors such as fear, uncertainty, and doubt (FUD), reduced developer activity, and declining LUNC trading volumes on Binance have contributed to this decline.
To address this issue, the community is now contemplating the proposal of requesting Binance to burn USTC alongside LUNC. USTC is the stablecoin that was negatively impacted during the 2022 Terra chain collapse. Last year, Binance reduced its burn contribution from 100% to 50% of LUNC spot and margin trading fees.
Potential Impact on Token Prices
As the broader cryptocurrency market undergoes a pullback, both LUNC and USTC prices have observed a 5% and 4% decrease respectively within the past 24 hours. However, it remains uncertain whether the latest burn will positively influence long-term price trends.
The recent LUNC burn marks a significant milestone for the Terra Luna Classic community. While its long-term impact on token prices remains uncertain, the community is actively exploring the possibility of requesting Binance to burn USTC alongside LUNC.
This potential action could prove to be a positive move for the ecosystem as a whole, reducing circulating supply and potentially enhancing the value of both tokens. As developments unfold, the Terra Luna Classic community eagerly anticipates the outcome, hoping for a brighter future ahead.